Stock news: Canada’s big banks raise dividends after strong Q2 earnings May 30th
Do you actually need a financial advisor in your 30s and 40s? May 9th
Stock news for investors: Rogers posts loss, Teck profit surges Jul 25th
Europe launches a new mission to image Earth's magnetic shield in 2026 while the operational satellite warning of solar storms is a 1995 spacecraft running 28 years past retirement — the gap between discovery science and operational continuity within a sin - Space Daily + MORE May 16th
A simple guide to investing your first $500 + MORE Jan 24th
Stock news for investors: Canopy Growth to acquire MTL Cannabis in $125-million deal
– moneysense.ca
Here’s a round-up of news for Canadian investors this week.
Canopy Growth
Blackberry
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Unlocking the Annuity Puzzle: Why Canadians avoid what seems to be the perfect retirement vehicle
– moneysense.ca
The Annuity Puzzle is about a curious phenomenon in Canada: while life annuities sold by insurance companies seem to have all sorts of compelling reasons to acquire them, more often than not, retirees shun them.
Financial planner Robb Engen recently tackled this puzzle in his Boomer & Echo blog, “Why Canadians avoid one of retirement’s most misunderstood tools.” Engen notes that experts like Finance professor Moshe Milevsky and retired actuary Fred Vettese believe “converting a portion of your savings into guaranteed lifetime income is one of the smartest and most efficient ways to reduce retirement risk.” Vettese has said the math behind an annuity is “pretty compelling,” especially for those without Defined Benefit pensions.
Milevsky and Alexandra Macqueen coined a great term applicable to annuities when they titled their book about the subject Pensionize Your Nest Egg, which I reviewed in the Financial Post in 2010 under the title ”A cure for pension envy?”
Engen observes that a life annuity is “the cleanest version of longevity insurance … You hand over a lump sum to an insurer, and they guarantee you monthly income for life…
